India’s Industrial Output Jumps to Two-Year High of 7.8% in December

New Delhi- India’s industrial production registered a sharp rise of 7.8 per cent in December 2025, marking the fastest growth in more than two years, driven by broad-based expansion across manufacturing, mining, and electricity, according to data released by the Ministry of Statistics on Wednesday.

This marked the second straight month of strong year-on-year growth in the Index of Industrial Production (IIP), following a 7.2 per cent increase recorded in November 2025.

Manufacturing output grew by 8.1 per cent in December, with 16 of the 23 industry groups reporting positive growth. Key contributors included basic metals, motor vehicles, pharmaceuticals, and chemicals. Within basic metals, flat alloy steel products, MS slabs, and steel pipes and tubes made significant contributions. In pharmaceuticals, growth was supported by higher production of veterinary vaccines, digestive enzymes, antacids, and vitamin APIs and formulations.

The mining sector rebounded strongly, posting a growth of 6.8 per cent in December compared to the same month last year, while electricity generation also rose by a robust 6.3 per cent.

Use-based data showed that capital goods output — representing machinery and equipment used in factories — surged by 8.1 per cent year-on-year, indicating a pickup in investment activity with potential multiplier effects on employment and income generation.

Consumer durables such as refrigerators, televisions, and washing machines recorded a double-digit growth of 12.3 per cent, while non-durable goods including soaps, cosmetics, and processed foods grew by a solid 8.3 per cent. The rise reflects strengthening consumer demand, aided by GST rate cuts that have boosted purchases of consumer goods.

Meanwhile, the infrastructure and construction segment posted a strong 12.1 per cent growth in December, supported by the implementation of large-scale government projects in highways, railways, and ports.

With inputs from IANS